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The Effect of Geography on Institutions - Practice Questions

1. Many of the regions in the West Indies and Central and South America were rich in ________________ endowments. *

natural resources (silver and sugar)

labor

both natural resources and labor

2. Compared to the crops in the West Indies, Central and South America, the North American continent: *

grew crops which had low economies of scale

had relatively few natives, and slaves never made up a large scale of the population

both a. and b.

3. Engerman and Sokoloff argue that the initial patterns of inequality established centuries ago in Latin and South America: *

were persistent and self-enforcing well into the future, leading to slower economic growth

were persistent for about five to ten years, but then their impact on economic growth faded

had no impact on economic growth